Managing people

Chapter 2
Theories
of
Managing
People

Objectives
Describe seven theories of
management and their “ideal” manager
Explain the competing values
framework and what constitutes a
master manager
Explain why it’s important to identify
your personal theories about
management and organizational
behavior
2 -1Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

…Objectives
Describe your personal theory of
management
Identify the managerial skills you need
in today’s global business environment

Scientific Management
2 -3
Small standardized jobs
Matched to the capabilities of
trained workers who received wage incentives
Efficient division of labor
Taylor
Organizational Behavior: An Experiential Approach 8/E

Administrative Theory
2 -4
Plan
Control
Organize
Command
Basic Functions of Managers
Fayol

Administrative Theory
Bureaucracy as a solution to nepotism,
favoritism and unprofessional behavior
Weber

Human Relations School
2 -6
 Acknowledged the effect of the informal
social system with its norms and individual
attitudes and feelings on organizational
functioning
 Underlined the importance of employee
morale and participation
Hawthorne
Studies

Assumptions about
Human Nature
2 -7
Theory X
Inherently lazy
Dislike responsibility
Prefer to be led
Theory Y
Responsible
Motivated to work hard
Capable of self-direction

Decision-Making School
 Described organizations as social systems
based on individual decisions
 Contributed the idea of bounded rationality
 Managers could control employee behavior
by controlling the premises of decision
making
2 -8
March & Simon

Contingency Approach
There is no one best way to manage in
every situation
Managers must find the appropriate
method to match a given situation
2 -9
“It depends”

Successful Organizations
2 -10
Shared
Values
Systems
Structure
Style
Skills Staff
Strategy
FIT

Open Systems Theory
 Organizations and all subdivisions take in and
transform resources into a service / product
which is purchased / utilized by a larger system
 All parts are interdependent (including the larger
environment in which the organization is
embedded)

Competing Values Framework
 Master managers balance the competing values of four
different models based on the situation
 Too much emphasis on any one model will lead to
failure
2 -12
Human Relations
Model
Open Systems
Model
Internal Process
Model
Rational Goal
Model

…Competing Values Framework
Rational
Goal
Internal
Process
Human
Relations
Open Systems
Criteria of
effectiveness
Productivity,
profit
Stability,
continuity
Commitment,
cohesion,
morale
Adaptability, external
support
Means – end
theory
Clear
direction
leads to
productive
outcomes
Routinization
leads to stability
Involvement
results in
commitment
Continual adaptation,
lead to innovation
acquiring,
maintaining external
resources
Emphasis Goal
clarification,
rational
analysis,
action taking
Defining
responsibility,
measurement,
documentation
Participation,
conflict
resolution,
consensus
building
Political adaptation,
creative problem
solving, innovation
Climate Rational
economic
Hierarchical Team oriented Innovative, flexible
Role of
manager
Director and
producer
Monitor and
coordinator
Mentor and
facilitator
Innovator and broker

The Positive and Negative
Zones
Human
Relations
Internal
Process
Internal
Process
Open
Systems

Mental Maps
 The first step in managing the paradoxes of
organizational effectiveness is understanding
one’s own theories of management
 Our theories or mental maps
determine what we see when
we look at situations and
determine the roles we perform

What Do Great Managers Do?
 Select for talent
 Not just for experience, intelligence and
determination
 Define outcomes when setting expectations
 Not the steps to get to the goals
2 -16
Buckingham
& Coffman

…What Do Great Managers Do?
Focus on strengths when motivating
Not on fixing weaknesses
Find the right job that fits the individual
Not just the next rung on the
promotion ladder

What Do Managers Do?
2 -18
Networking:
Socializing, dealing
with outsiders, hand-
ling organizational
politics
Traditional
Management:
Planning, budgeting,
decision making
Human Resource
Development:
Motivating, reinforcing,
training, developing
employees
Communication:
Paperwork, passing on
information
Luthans et
al.

What Constitutes
an Effective Manager?
Depends on the measure of effectiveness
used and the outcomes to be achieved
2 -19
Networking
Traditional
Management
Human Resource
Development
Communication

Effectiveness Criteria:
Most Rapidly and Most Often
Promoted
How Do They Spend Their Time?
2 -20
Networking
Traditional
Management
Human Resource
Development
Communication
28% 13%
11% 48%

Effectiveness Criteria:
Highest Performers (Results and
Satisfied, Committed Employees)
2 -21
Networking
Traditional
Management
Human Resource
Development
Communication
45% 15%
27% 12%

Criteria of Effectiveness:
Both Promotions and
Performance
2 -22
Networking
Traditional
Management
Human Resource
Development
Communication
Balanced use
of time

Lessons for Today’s Managers
 Learn to analyze complex situations using a
variety of models or theories because no one
theory is sufficient
 Develop a broad repertoire of behaviors and
knowledge about when to use them
 Develop the self-control and self-discipline to
go beyond your natural style and adapt to a
rapidly changing environment

Managing people

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